Action trumps review on banks

31 AUGUST 2016: I chose action to pull the big banks into line today rather than another inquiry because actions speak louder than words and wasted time. Actions trump inquiries every time and the Liberal National Government has not wasted time in tackling what is an important issue in the eyes of everyday people. The Government is going to set up a one-stop-shop banking tribunal for banking industry complaints, which will compensate victims of banking malfeasance and may issue penalties against banks. That is under consideration now through the Ramsay review.The quickest and most effective means of keeping the banks in check was to use existing structures, including the Australian Securities and Investment Commission. ASIC already has all the powers of a Royal Commission but also has strong powers to compel a person to answer questions under oath, to compel the production of documents, and to then use this information in prosecutions. As a result of representations I have made to ministers over the past few days, the Small Business and Family Enterprise Ombudsman is going to conduct a forensic review of a whole range of banking scandals that were raised during a parliamentary inquiry with a view to further action.The other action that will be taken by the Coalition Government is that banks will be hauled before the House of Representatives Standing Committee on Economics to explain pricing decisions and to discuss their progress and explain their actions in responding to issues every year. The Government is getting on with the business of keeping the banks honest, while Labor was busy trying to derail the safeguards being put in place for their own political purposes.Most of the notable scandals and collapses within the financial services sectors occurred under Labor’s watch and the Labor government, including their Minister responsible for Financial Services, Bill Shorten, did nothing. This includes scandals and collapses such as Opes Prime, Storm Financial and CBA Financial planning to name just a few.The Liberal National Government is now taking the path that will result in faster and more decisive action to ensure the big four banks are kept in check.